John Mayer Company purchased land, land improvements and building from Bruno Mars Company for P14.4M and from Sam Smith Company furniture and equipment for P18.6M. The total cash outlay for the transactions amounted to P33M. The appraised values of the assets are as follows: Building - P5M; Equipment - P3M; Furniture - P1M; Land - P13.5M; Land Improvements - P1.5M.

The allocated cost of the building is

Group of answer choices

6,875,000

3,600,000

6,785,000

4,600,000